Tata Motors’ Jaguar Land Rover (JLR) has reported its Q4 FY25 financial results, showcasing a stable yet notable performance amid a challenging global automotive landscape.
The company posted a revenue of £7.7 billion for Q4, down 1.7% year-on-year (YoY), with profit before tax (PBT) at £875 million, marking an improvement over the £661 million recorded in Q4 FY24. Full-year revenue remained flat at £29.0 billion, while the annual PBT reached £2.5 billion, reflecting a 15% YoY increase. This marked the best profit before tax in a decade.
JLR’s earnings before interest and taxes (EBIT) for Q4 stood at 10.7%, a 150 basis point improvement compared to the previous year, and the full-year EBIT margin was 8.5%. The company’s consistent profitability was driven by higher volumes and reduced depreciation and amortization (D&A), although offset by an increase in variable manufacturing expenses (VME).
Additionally, JLR achieved strong free cash flows of £1.5 billion in FY25, contributing to a cash balance of £4.6 billion, with net cash standing at £278 million. The company’s gross debt was £4.4 billion, and total liquidity, including undrawn credit facilities, amounted to £6.3 billion.
Looking ahead, JLR continues to progress with its “Reimagine Transformation” plan. Notable highlights include the launch of new electric vehicle (EV) production lines at Solihull, UK, and a strong demand for hybrid and electric models like the Range Rover and Defender. The company is also working on a fully electric Range Rover, which has garnered significant interest with over 61,000 orders.
JLR also completed successful trials with Novelis for high-grade, energy-efficient aluminium production, highlighting its commitment to sustainability. The company remains optimistic about its future prospects, with £18 billion planned investments over the next five years, funded by operational cash flows.
Looking forward, JLR plans to navigate challenges from global trade tariffs, with the recent US-UK trade agreement offering some relief, reducing tariffs on UK auto exports to the US from 27.5% to 10%, up to 100,000 vehicles annually. The company remains focused on delivering for its global clients and protecting its profitability through ongoing transformation and efficiency efforts.
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